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Leases | 3 Months Ended
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Jun. 30, 2019
Leases [Abstract] |
Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset. Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments. Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The following table presents lease assets and liabilities and their balance sheet classification:
|  | Classification |  | June 30, 2019
Operating Leases: |  |  |  |
Right-of-use Assets |  | Other assets |  | $ | 81,627 |
Operating lease current liabilities |  | Accrued expenses |  | 23,265 |
Operating lease non-current liabilities |  | Other liabilities |  | 60,811 |
Finance Leases: |  |  |  |
Right-of-use Assets |  | Property, plant, and equipment, net |  | $ | 10,906 |
Finance lease current liabilities |  | Current portion of debt |  | 10,383 |
Finance lease non-current liabilities |  | Non-current portion of debt |  | 557 |
The components of lease expense for the quarter ended June 30, 2019 were as follows:
|  | Classification |  | Quarter ended June 30, 2019
Operating Leases: |  |  |  |
Operating lease cost |  | Operating expenses |  | $ | 7,295 |
Variable lease cost |  | Operating expenses |  | 1,706 |
Short term lease cost |  | Operating expenses |  | 2,184 |
Finance Leases: |  |  |  |
Depreciation |  | Operating expenses |  | $ | 143 |
Interest expense |  | Interest expense |  | 12 |
Total |  |  |  | $ | 11,340 |
The following table presents the weighted average lease term and discount rates for our leases:
|  | Quarter ended June 30, 2019
Operating Leases: |  |
Weighted average remaining lease term (years) |  | 5.2 years
Weighted average discount rate |  | 5.41%
Finance Leases: |  |
Weighted average remaining lease term (years) |  | 3.3 years
Weighted average discount rate |  | 4.91%
The following table presents future payments due under leases reconciled to lease liabilities:
|  | Quarter ended June 30, 2019
|  | Finance Leases |  | Operating Leases
Nine months ended March 31, 2020 |  | $ | 10,360 |  |  | $ | 20,759 |
Year ended March 31, |  |  |  |
2021 |  | 219 |  |  | 22,205 |
2022 |  | 197 |  |  | 16,510 |
2023 |  | 150 |  |  | 11,514 |
2024 |  | 107 |  |  | 7,692 |
Thereafter |  | 26 |  |  | 18,144 |
Total undiscounted lease payments |  | 11,059 |  |  | 96,824 |
Present value discount |  | 119 |  |  | 12,748 |
Lease liability |  | $ | 10,940 |  |  | $ | 84,076 |
The following tables present supplemental disclosures of cash flow information related to leases:
|  | Quarter ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows from finance leases |  | $ | 12 |
Operating cash flows from operating leases |  | 7,213 |
Financing cash flows from finance leases |  | 142 |
Supplemental non-cash information on lease liabilities arising from right-of-use assets: |  |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | — |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 2,628 |
Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset. Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments. Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The following table presents lease assets and liabilities and their balance sheet classification:
|  | Classification |  | June 30, 2019
Operating Leases: |  |  |  |
Right-of-use Assets |  | Other assets |  | $ | 81,627 |
Operating lease current liabilities |  | Accrued expenses |  | 23,265 |
Operating lease non-current liabilities |  | Other liabilities |  | 60,811 |
Finance Leases: |  |  |  |
Right-of-use Assets |  | Property, plant, and equipment, net |  | $ | 10,906 |
Finance lease current liabilities |  | Current portion of debt |  | 10,383 |
Finance lease non-current liabilities |  | Non-current portion of debt |  | 557 |
The components of lease expense for the quarter ended June 30, 2019 were as follows:
|  | Classification |  | Quarter ended June 30, 2019
Operating Leases: |  |  |  |
Operating lease cost |  | Operating expenses |  | $ | 7,295 |
Variable lease cost |  | Operating expenses |  | 1,706 |
Short term lease cost |  | Operating expenses |  | 2,184 |
Finance Leases: |  |  |  |
Depreciation |  | Operating expenses |  | $ | 143 |
Interest expense |  | Interest expense |  | 12 |
Total |  |  |  | $ | 11,340 |
The following table presents the weighted average lease term and discount rates for our leases:
|  | Quarter ended June 30, 2019
Operating Leases: |  |
Weighted average remaining lease term (years) |  | 5.2 years
Weighted average discount rate |  | 5.41%
Finance Leases: |  |
Weighted average remaining lease term (years) |  | 3.3 years
Weighted average discount rate |  | 4.91%
The following table presents future payments due under leases reconciled to lease liabilities:
|  | Quarter ended June 30, 2019
|  | Finance Leases |  | Operating Leases
Nine months ended March 31, 2020 |  | $ | 10,360 |  |  | $ | 20,759 |
Year ended March 31, |  |  |  |
2021 |  | 219 |  |  | 22,205 |
2022 |  | 197 |  |  | 16,510 |
2023 |  | 150 |  |  | 11,514 |
2024 |  | 107 |  |  | 7,692 |
Thereafter |  | 26 |  |  | 18,144 |
Total undiscounted lease payments |  | 11,059 |  |  | 96,824 |
Present value discount |  | 119 |  |  | 12,748 |
Lease liability |  | $ | 10,940 |  |  | $ | 84,076 |
The following tables present supplemental disclosures of cash flow information related to leases:
|  | Quarter ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows from finance leases |  | $ | 12 |
Operating cash flows from operating leases |  | 7,213 |
Financing cash flows from finance leases |  | 142 |
Supplemental non-cash information on lease liabilities arising from right-of-use assets: |  |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | — |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 2,628 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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